topic Re: What did I do wrong? in Credit Cards

What did I do wrong?

Anonymous — Wed, 20 Aug 2014 04:43:13 GMT

I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 04:44:08 GMT

@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[img]http://i62.tinypic.com/2gxmf83.jpg[/img]

Looks like lack of current accounts is your problem. But $6k is great - especially at 18!!!! Use the card and do the 61 day credit increase and you'll be at possibly $18K!!!!!

Re: What did I do wrong?

yfan — Wed, 20 Aug 2014 04:45:08 GMT

Your FICO score isn't the only factor in determinin your credit limit. Additional factors like length of credit history (which you seem to have none to speak of) matter just as much. Thin files won't get big limits. You are an 18 year old with a $6,000 credit limit. That is damn good.

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 04:47:06 GMT

@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]

You didnt do anything wrong. It looks like they just want to see a thicker credit report file for you. The word adverse seems very negative but its standard on these types of messages. At 18 years of age I'd consider this a definite win so congrats!

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 04:47:47 GMT

@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]

CLs are based on much more than just score, income being an obvious one. $6K is not low, you can see people here with much lower starting CLs.

The adverse factors seem to be just that you have a thin file. You don't have enough revolving (other credit cards) history, or installment (auto loan, student loan etc) history.

But bear in mind that unless your score is 850 or near, the algorithm will always produce some negative factors. So fixing them doesn't always move the score greatly, and in this case you would need to open new accounts, which would decrease the score in the short term.

Re: What did I do wrong?

peaceonearth — Wed, 20 Aug 2014 04:58:55 GMT

@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]

Wait,, I thought you could not get a credit under the age of 18.

Re: What did I do wrong?

shane82388 — Wed, 20 Aug 2014 05:00:42 GMT

Haha... $6000 AMEX approval at 18, where you theoretically should have essentially zero credit history... "What did I do wrong?!"

Hahaha, absolutely nothing. More like like what did you (or someone else) do right to right to make that happen?! Middle aged people are clicking their their heels for a $1500 appoval from AMEX on here a lot of the time.

Congrats.

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 05:03:26 GMT

@peaceonearth wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
Wait,, I thought you could not get a credit under the age of 18.

I'm guessing he turned 18 in March. If you are talking credit score, I think AU is a different story - I don't know for sure.

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 05:13:41 GMT

@peaceonearth wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
Wait,, I thought you could not get a credit under the age of 18.

I'm 18, and my card arrived today, I activated it, and tested it out.

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 05:20:26 GMT

@Anonymous wrote:
@peaceonearth wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
Wait,, I thought you could not get a credit under the age of 18.
I'm 18, and my card arrived today, I activated it, and tested it out.

Well you should thank your parents for making you an AU on their cards and getting you started on your credit journey

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 05:26:23 GMT

@Anonymous wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
CLs are based on much more than just score, income being an obvious one. $6K is not low, you can see people here with much lower starting CLs.

The adverse factors seem to be just that you have a thin file. You don't have enough revolving (other credit cards) history, or installment (auto loan, student loan etc) history.

But bear in mind that unless your score is 850 or near, the algorithm will always produce some negative factors. So fixing them doesn't always move the score greatly, and in this case you would need to open new accounts, which would decrease the score in the short term.

Thanks for your reponse. What kind of CL do people normally start off with? What type of accounts do I need to open to help my score the most? What type of new account do you recommend me opening to help me most with my situation (e.g., auto loan, credit cards, student loan, store cards, etc)? What type of account do you think will help make the most positive impact on my credit? Thanks

Re: What did I do wrong?

SunriseEarth — Wed, 20 Aug 2014 05:21:29 GMT

@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]

I think you have a lot to learn about credit. Having a $6K CL at 18 as your initial CL is extremely good, especially since most 18 year olds don't have lots of income.

Re: What did I do wrong?

ramblinggirl — Wed, 20 Aug 2014 06:00:43 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
CLs are based on much more than just score, income being an obvious one. $6K is not low, you can see people here with much lower starting CLs.

The adverse factors seem to be just that you have a thin file. You don't have enough revolving (other credit cards) history, or installment (auto loan, student loan etc) history.

But bear in mind that unless your score is 850 or near, the algorithm will always produce some negative factors. So fixing them doesn't always move the score greatly, and in this case you would need to open new accounts, which would decrease the score in the short term.
Thanks for your reponse. What kind of CL do people normally start off with? What type of accounts do I need to open to help my score the most? What type of new account do you recommend me opening to help me most with my situation (e.g., auto loan, credit cards, student loan, store cards, etc)? What type of account do you think will help make the most positive impact on my credit? Thanks

Dont want to sound like a Debbie Downer but I think you should put the brakes on applying for more credit. Enjoy your very generous credit line and learn responsiblle use of your credit card. Many moons ago, credit card companies would come to college campuses and bombard students with credit card offers-It didnt matter if you had a job or not. Well many of those students were financially ruined well before graduating college because they didnt know how to handle buy now -pay later. Fast forward 30yrs later and you have the internet and the instant gratification generation-not a good combination. You are probably very responsible but one can easily fall into this credit card trap. Good luck.

Re: What did I do wrong?

Anonymous — Wed, 20 Aug 2014 06:40:17 GMT

What AU accounts are on your file and what are their credit limits?

Re: What did I do wrong?

SunriseEarth — Wed, 20 Aug 2014 10:00:38 GMT

@ramblinggirl wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
CLs are based on much more than just score, income being an obvious one. $6K is not low, you can see people here with much lower starting CLs.

The adverse factors seem to be just that you have a thin file. You don't have enough revolving (other credit cards) history, or installment (auto loan, student loan etc) history.

But bear in mind that unless your score is 850 or near, the algorithm will always produce some negative factors. So fixing them doesn't always move the score greatly, and in this case you would need to open new accounts, which would decrease the score in the short term.
Thanks for your reponse. What kind of CL do people normally start off with? What type of accounts do I need to open to help my score the most? What type of new account do you recommend me opening to help me most with my situation (e.g., auto loan, credit cards, student loan, store cards, etc)? What type of account do you think will help make the most positive impact on my credit? Thanks
Dont want to sound like a Debbie Downer but I think you should put the brakes on applying for more credit. Enjoy your very generous credit line and learn responsiblle use of your credit card. Many moons ago, credit card companies would come to college campuses and bombard students with credit card offers-It didnt matter if you had a job or not. Well many of those students were financially ruined well before graduating college because they didnt know how to handle buy now -pay later. Fast forward 30yrs later and you have the internet and the instant gratification generation-not a good combination. You are probably very responsible but one can easily fall into this credit card trap. Good luck.

+1 to that. AMEX had the good sense way back when not to give me insane CLs (and I closed them because of it). However, my other lenders were on the hook for $30K when I declared BK. My CCs were obtained while I was in college, filling apps out to get free goodies. It definitely seems so absurd now!

Re: What did I do wrong?

jamesdwi — Wed, 20 Aug 2014 12:25:22 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
CLs are based on much more than just score, income being an obvious one. $6K is not low, you can see people here with much lower starting CLs.

The adverse factors seem to be just that you have a thin file. You don't have enough revolving (other credit cards) history, or installment (auto loan, student loan etc) history.

But bear in mind that unless your score is 850 or near, the algorithm will always produce some negative factors. So fixing them doesn't always move the score greatly, and in this case you would need to open new accounts, which would decrease the score in the short term.
Thanks for your reponse. What kind of CL do people normally start off with? What type of accounts do I need to open to help my score the most? What type of new account do you recommend me opening to help me most with my situation (e.g., auto loan, credit cards, student loan, store cards, etc)? What type of account do you think will help make the most positive impact on my credit? Thanks

typical prime cards start at 1-3k CL's, higher if you have good income and 1 year or longer history with a VISA/MC/AMEX card reporting.

if your score is 794, these isn't much you can do to improve your score except time. You could wait a couple months and apply for another prime credit card or two. Chase Freedom is a good rewards card. In January you can think about applying for a AMEX charge card, PRG, it will come with a full year of back dating, it will show on your reports as being older than your first AMEX card that will help AAoA.

Remeber, pay your bills, pay more than the minimum, PIF is better, don't max the card. A lot of people would be jellous of getting a 6k CL at 18. Some people here would be over joyed to get a 6K CL at 36, or even 46.

Re: What did I do wrong?

joltdude — Wed, 20 Aug 2014 16:18:18 GMT

Lack of credit history is your problem... Id go for the 61 day 3X CLI.... Youll want to use the card a bit .. there are threads on it..

Re: What did I do wrong?

joltdude — Wed, 20 Aug 2014 16:29:53 GMT

@jamesdwi wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I applied for an amex delta account, but i only got approved for $6K and I received my card today, and it had a disclosure saying that my "FICO score is 794" I thought from my reading and research here that it's a good score and i should be getting a much higher CL. I just turned 18 recently and my birthday was in March. It said there were adverse key factors affecting my score and I want to know how to fix them? I am attaching a picture of the letter here. Please help

[IMG]http://i.imgur.com/RP4bLXL.jpg[/IMG]
CLs are based on much more than just score, income being an obvious one. $6K is not low, you can see people here with much lower starting CLs.

The adverse factors seem to be just that you have a thin file. You don't have enough revolving (other credit cards) history, or installment (auto loan, student loan etc) history.

But bear in mind that unless your score is 850 or near, the algorithm will always produce some negative factors. So fixing them doesn't always move the score greatly, and in this case you would need to open new accounts, which would decrease the score in the short term.
Thanks for your reponse. What kind of CL do people normally start off with? What type of accounts do I need to open to help my score the most? What type of new account do you recommend me opening to help me most with my situation (e.g., auto loan, credit cards, student loan, store cards, etc)? What type of account do you think will help make the most positive impact on my credit? Thanks
typical prime cards start at 1-3k CL's, higher if you have good income and 1 year or longer history with a VISA/MC/AMEX card reporting.

if your score is 794, these isn't much you can do to improve your score except time. You could wait a couple months and apply for another prime credit card or two. Chase Freedom is a good rewards card. In January you can think about applying for a AMEX charge card, PRG, it will come with a full year of back dating, it will show on your reports as being older than your first AMEX card that will help AAoA.

Remeber, pay your bills, pay more than the minimum, PIF is better, don't max the card. A lot of people would be jellous of getting a 6k CL at 18. Some people here would be over joyed to get a 6K CL at 36, or even 46.

NO NO NO... Wait at least a year for Chase.. they dont like thin files *at all*....Chase wants "established" credit users..Chase doesn't care about AU's, believe discover does

Heres what I'd do....
1. Use the card.. pay in full on the bill ... and go for the 61 day CLI
2. Garden for 6-9 months (yes i know your an AU, but its still better to have that amex for at least 6 months)...(you want an AAOA of 6 months, preferably more, Chase and Barclays prime cards tend to want a year, exception being the Barclay Rewards for Average credit, might be able to get that in 9 months)
3. Go for Discover or perhaps a CU Visa/MC.... (Discover in all their wierdness rather will entertain a thin file/new to credit, than baddies...
some CU's will take a chance on thinner accounts esp if they have a score)

'

Re: What did I do wrong?

tempusfugit123 — Wed, 20 Aug 2014 16:42:52 GMT

There are people in their late 40's on here dreaming of getting what you just recieved! Congrats. You just started off your credit journey amazingly. You need to establish a credit history and add some type of loan in the future to improve the score but by the looks of things your off to a perfect start.

Re: What did I do wrong?

heyarrnold — Wed, 20 Aug 2014 17:12:05 GMT

Yes, congrats! At 18, that's an awesome starting limit. You did nothing wrong. On the contrary, everything looks great. When I was your age, I only had two secured CC's @ $300 each haha. Your credit limit, for your now one card, was 10x of my combined limits haha. And when I was finally approved for my own Amex, I was only given 3k.